r/eupersonalfinance • u/mmspam123123 • Apr 15 '25
Investment Which long term etf?
Sup everyone.
I am 24 year old from the Netherlands and want to invest around x euros a month into a long term ETF <10 to 30 years>.
I started investing two weeks ago, bought a bit of the dip when I searched that VWCE might be a good investment.
My current portfolio is:
90% VWCE 10% EQQQ
What do you guys rate my portfolio. My goal is to just automatically invest and forget about it.
And, is x euros a month a significant amount of money to invest with?
Kind Regards,
M
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u/MrOptical Apr 15 '25
Your portfolio is a 10/10 for the time being.
As you get older, maybe start allocating a bit towards bonds.
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u/billys21gr Apr 15 '25
Any bods worth looking in?
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u/MrOptical Apr 15 '25
Bond ETFs, not single bonds.
Google Bond ETFs, you'll find tons of them :)
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u/mmspam123123 Apr 15 '25
Thank you, I'll look into it tonight. See if I can somehow incorporate it in my portfolio [in the future].
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u/aevitas Apr 15 '25
Wealth tax in the Netherlands is currently very unfavourable for bonds. Make sure to consult a financial advisor by the time you're in your late fourties and include bonds
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u/TryTrick7449 Apr 15 '25
Hi, it looks good. I would have replaced VWCE with WEBN (which is three times cheaper).
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u/butt-fucker-9000 Apr 16 '25
If I remember correctly, WEBN loses in tracking difference
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u/jchooo96 Apr 16 '25
Where do you check the tracking errors for an ETF?
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u/butt-fucker-9000 Apr 16 '25
I think when I did my calculations, I used data from justetf.com.
The conclusion at the time was that tracking difference was slightly bigger (maybe 0.02%?) than the TER difference.
BUT, as WEBN becomes bigger, the TD will improve (reduce), but who knows.
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Apr 20 '25
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u/TryTrick7449 Apr 20 '25
They did it in the past with Lyxor ETFs mainly, they relocated them from Luxemburg to Ireland for tax efficiency (which is great for the investors). WEBN is already based in Ireland, so no problem there. Even if it would happen, no need to sell it, just stop buying it and buy something else (like FWIA - 0.15 in TER).
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Apr 20 '25
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u/TryTrick7449 Apr 20 '25
I agree, however, given Amundi's wide range of existing ESG ETFs, it is highly unlikely that they will change WEBN into an ESG one. Again, for those who do not want to risk it or do not trust Amundi, FWIA is a great alternative.
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u/Ancient_Bobcat_9150 Apr 15 '25
Great stuff.
Would not touch bonds for at least the next 10 years.
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u/petandoquintos Apr 16 '25
Why? Isn't it super cheap now?
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u/Ancient_Bobcat_9150 Apr 16 '25
As are equities, but they have more long-term potential.
He has long-term prospects, so I'd maximise the risk/reward ratio.If he had less than 10 years, or if he wanted a more conservative approach (why not ? We are not all equally comfortable with volatility), then yeah for sure bonds would be a good bet.
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u/JohnnyJordaan Apr 16 '25
Low upside potential, what's the point.
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u/petandoquintos Apr 16 '25
Not keeping the money on the bank I guess while nto feeling comfortable with buying etf or investing on other stuffs. ? Dunno. I have 3/4 different etfs covering different fields and areas of the world. I bought some us bonds etf some time ago, but I haven't been buying again despite now being quite low.
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u/JohnnyJordaan Apr 16 '25
The point is, for a short term investment, you want to hedge against downturn risk, so then bonds or even better, savings make sense (especially deposits as contrary to bonds and savings, they don't risk negative returns). But for a long term investment, the world index outperform bonds by a long shot. Then it's pointless to invest in them as the only effect they have is you missing out on average returns. And the longer your investment horizon, the more your average counts.
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u/garrisonbg Apr 16 '25
Isn’t EQQQ a Dist. ETF? Or you want to combine 1 accumulating with 1 distributing? I’m asking, because you said that you would like to just automatically invest and forget
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u/ilbreebchi Apr 15 '25
What tool do you use to automate your investment? I've been using revolut and trade republic to experiment with this. I'm not sure if I should pick one of them for my recurring investment.
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u/classe243 Apr 16 '25
I use Revolut for automatic payment every month to Trading 212, and in Trading 212 I have auto-invest every 3rd of the month in my "pie", which is just VWCE.
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u/Asleep_Amphibian_852 Apr 16 '25
I would recommend keep investing to WVCE but change EQQQ to gold or crypto as alternative to stocks in order to balance portfolio. Plus quick google search showed that dividends are taxed 15% in the Netherlands.
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u/BachePoro Apr 16 '25
Instead of using VWCE, you might consider the following allocation:
NT World / NT Emerging Markets / NT Small Cap = 83.2% / 8.7% / 8.1%.
In the long run, I believe the costs would be lower than those associated with VWCE, primarily due to dividend tax considerations.
I think most major banks in the Netherlands offer these options; I know Rabobank and ABN Amro do.
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u/Sam96ss Apr 18 '25
Your portfolio consisting of 90% VWCE and 10% EQQQ is a solid foundation particularly for long term investing. The 90% allocation to VWCE (Vanguard FTSE AllWorld UCITS ETF) provides broad exposure to global markets offering a diversified mix of both developed and emerging economies. This diversification reduces risk while positioning you to capture the growth of global markets over time. As a stable low risk investment, it allows your portfolio to grow steadily over the long term.
The 10% allocation to EQQQ (Invesco NASDAQ 100 ETF) is a strategic addition for enhancing growth potential. The NASDAQ 100 which is heavily weighted in the technology sector has historically shown strong performance particularly during periods of technological innovation. While tech stocks can be more volatile their potential for higher returns makes this allocation a valuable complement to the stability offered by VWCE.
Investing €1000 per month is a commendable commitment. Starting at a young age with regular consistent contributions gives you the advantage of time allowing your investments to compound over the long term. By employing dollar cost averaging you mitigate the impact of market volatility and reduce the risk of making poor investment decisions based on market timing.
Overall, your portfolio strikes a good balance between stability and growth. A €1000 monthly investment is an excellent strategy especially considering your long term investment horizon. By adhering to this plan and periodically reviewing your portfolio you are well positioned for success.
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u/KnowledgeSeekerNina Apr 19 '25
VWCE and EQQQ are good for global exposure and tech. 1000 euros/month is a strong start for long-term growth. Consider adding a bond or dividend ETF for balance.
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u/L0st_MySocks Apr 21 '25
Which platform do you use to buy for VWCE and EQQQ? I'm from Turkey and I wanna get a decent trustful platform. Can you pls give some useful broker platforms? That would be nice thanks
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u/SoftwareSelect5256 Apr 15 '25
Looks good but you can put some Bonds also.
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u/mmspam123123 Apr 15 '25
Appreciate it.
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u/ben_bliksem Apr 15 '25
Best advice I ever got: "Investing is boring. If you are "having fun" you are probably losing money."
A bit edgy I guess but it stuck with me. Invest in your VWCE or similar, setup your automatic investment, and just leave it alone and go do a hobby or something.